Samsung Marketin Strategy

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Samsung's Marketing Strategy in India

Product InnovationSamsung's product range in India included CTVs, audio and video products, information technology products, mobile phones and home appliances (Refer Exhibit I). Its product range covered all the categories in the consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the technology platform...

PricingPricing also seemed to have played a significant role in Samsung's success...

DistributionAlong with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped the company get quick feedback from dealers, and enabled it to launch products according to consumer needs...

Advertising and Sales PromotionIn 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the company. So, in order to establish itself in the Indian consumers' mind, Samsung launched corporate advertisements highlighting its technologically superior goods...

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We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market." Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.

The "Team Samsung India First" Campaign

In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers 'Team Samsung', as its brand ambassadors. In doing this, it aimed to cash in on the popularity of cricket in India. However, the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses2, arising from ICC's agreement with some other companies. In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.

Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve concepts to do with the players, to promote the cause of cricket and patriotism.'' The copy of the print ad read, 'With Team Samsung, It's India First.''

Samsung - The Making of a Global Brand

The Making of a Global BrandIn 1993, as a first step in its globalization drive, Samsung acquired a new corporate identity. It changed its logo and that of the group. In the new logo, the words Samsung Electronics were written in white color on a blue color background to represent stability, reliability and warmth. The words Samsung Electronics were written in English so that they would be easy to read and remember worldwide. The logo was shaped elliptical representing a moving world - symbolizing advancement and change...

Product InitiativesSamsung realized that to become a global brand, it had to change the perceptions of consumers who felt that it was an OEM player and associated its products with low technology. Generally, consumers in developed markets (such as the US) opted for Samsung when they could not afford brands such as Sony and Panasonic. To change consumer perceptions, Samsung decided to focus on product design and launch innovative products...

Consolidating Presence in Different MarketsTo change its brand image, Samsung decided to associate itself with global sport events. In 1998, when Seoul hosted the Olympics, Samsung became the official sponsor of the wireless technology to the games. This move helped it boost its image worldwide. In 1999, Erick Kim (Kim), a Korean American working with IBM, took over as the marketing head of Samsung. He focused on capturing the US retail market for consumer electronic goods, such as TVs, washing machines and microwave ovens, through partnerships with US retailing giants. Samsung entered into a partnership with Best Buy one of the top US retailers. Best Buy executives conducted customer research to analyze consumer-buying behavior...

Advertising and Promotional StrategiesIn 1997, Samsung launched its first corporate advertising campaign - Nobel Prize Series. This ad was aired in nine languages across Europe, the Middle East, South America and CIS countries. The advertisement showed a man (representing a Nobel Prize Laureate) passing from one scene to another. As the man passes through different scenes, Samsung products transform into more advanced models. According to company sources, the idea was to convey the message that Samsung uses Nobel Prize Laureates' ideas for making its products...

Beating Sony?In 2001, Samsung declared that it would beat Sony in the consumer electronics market by 2005. Kim said, "We want to beat Sony. Sony has the strongest brand awareness; we want to be stronger than Sony by 2005." However, analysts felt that it would be difficult for Samsung to beat Sony so soon as Samsung was regarded as an OEM player till the mid-1990s. In 2002, while Samsung was ranked 34th with a brand value of $8.1 billion, Sony was ranked 21st with an estimated brand value of $13.90 billion. However, while Samsung's rank had moved up from 42 in 2001, Sony's had slipped down from 20th in 2001. In the third quarter of 2002, Samsung emerged as the world's number three player in the mobile market, beating Siemens and Ericsson, with a marketshare of 36.4%... -------------------------------------------xxxxx-------------------------------------

We are highlighting the main points on Samsung Company. Our report will surely be fruitful for the marketing strategy of Samsung. Samsung intends to earn world leadership and secure overwhelming competitive strength. It is synchronizing product development, sales, manufacturing, marketing and design. Samsungs slogan everyones invited describes its broad target market strategy, with a vast line of products. According to our analysis, Samsungs main strengths are its Global Business Network, Brand Name Credibility, MPR2 technology, TFT LCDs, innovative changes and new styles in Flatron and specially the quality awards that it has won since last two years continuously are positive points for Samsung. Samsungs Sales and Service centers are in 4 different countries, with vertical sort of distribution system. Samsung can use its strengths as threats for other companies. It can easily raise its image by its quality products and promotional advertisements. Promotional activities can play a key role in capturing the market share for Samsung. This report highlights four major points and is further sub-divided into parts, which is preceded by a brief abstract of its contents. Part I presents the introduction and brief History of Samsung; Part II explains the main Strengths, Weaknesses, Opportunities and Threats of the Company; Part III shows the Target Market of Samsung; Part IV presents the Marketing Mix of the Company; Part V gives the Observations and Recommendations. All the things have been discussed according to Samsungs presence Globally and particularly in accordance to Pakistan. Introduction Established in 1969, Samsung Electronics has emerged as a major player in the world electronics industry. The company consists of 4 main business units: the Digital Media Business, Semiconductor Business, Information & Communications Business and Home Appliances Business. It employs over 66,000 people in some 50 countries worldwide. Samsung Electronics is ranked 131st on the Global Fortune 500 List Samsung is best known for the success it has had in the memory semiconductor industry. From 1992, Samsung Electronics is positioned at the top of the DRAM, semiconductor market. Since then, it has diversified its financial structure and is considered the number 1 company in market share for memory semiconductor chips, TFT-LCDs, CDMA mobile phones and computer monitors. It is also ranked number 4 by sales in the semiconductor industry and number 6 by units in the mobile phone industry. Looking ahead, Samsung's vision is to become a leading company of the digital convergence revolution. The 21st century will be a time where the Internet, wireless communications, networked systems and contents will be united. Various forms of convergence technology that link conventional stand-alone appliances through networks will be developed. In the new digital convergence age, core competitiveness will be determined by how companies develop networks from components to digital products. Few companies have the business structure to form this network in-house. Samsung, however, is ready to lead in this Age as it will use its strengths in semiconductor, telecommunications and consumer electronics technology to develop innovative multi-capable products and create powerful networks that will empower the user for anytime, anywhere communications and a higher quality of life.

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Corporate sponsorship gets fashionableThe competition is a nationwide model search seeking a male and female Samsung Mobile Ione Modle who will open Sanlam South African Fashion Week (SSAFW) in August this year. The winning pair will secure a one-year contract with Samsung Mobile to appear in selected above and below-the-line campaigns for the brand and, to provide international exposure for the pair on this corporate advertising platform, they will win a contract with Next Models in New York to the value of US$75 000 each. The partnership between Samsung Mobile and SSAFW comes at a time when the movement towards the fusion of art, fashion and technology is stronger than ever and where corporate sponsorship of this kind, are slowly developing towards co